Scots public transport giant Stagecoach said it is on track to meet its full-year profit targets after a rise in tickets sales on its bus and train operations.

In a trading update, the Perth-based company said that at its UK rail unit, which includes South West Trains, like-for-like revenues rose 6.5 per cent in the 24 weeks to 17 October from a year ago.

Revenues under the same measurement were up 15 per cent at Virgin Rail, in which Stagecoach owns a 49 per cent stake.

Sales at Stagecoach's UK bus unit rose 2.3 per cent, while its North American coaches operation posted a 7.5 per cent rise in underlying revenue in the five months to September 30, shrugging off tough economic conditions.

Last month the Government said it would keep subsidising bus operators, but will reduce payments by 20% from April 2012.

In a statement Stagecoach run by chief executive Brian Souter - said the change would not affect its profit this year but that it would take the changes into account when making future decisions on bus services, tenders and fares.

Last month the firm re-entered the London bus market after buying the East London Bus Group for s59.5 million - less than a quarter of the money the transport firm received when it sold off the business to Macquarie Bank for s264 million in 2006. Stagecoach said the purchase would not materially affect its profit for the year to the end of April.

The company plans to announce its interim results for the six months to the end of October on 8 December.